The proportion of cryptocurrency remittances in El Salvador remains low, accounting for less than 1% of the total in December last year

ChainCatcher news, according to Bitcoin.com, data from the Central Bank of El Salvador shows that since October 2024, the proportion of cryptocurrency remittances in the country has remained below 1% of the total. This figure stands in stark contrast to the nearly 5% peak in October 2021 when the country adopted Bitcoin as legal tender.

Financial writer John Paul Koning pointed out that although President Nayib Bukele has stated that traditional financial institutions charge up to 25% in fees for remittances, the official digital wallet Chivo offers zero fees, cryptocurrency remittances have failed to gain widespread adoption among the dollarized population in the country.

According to an agreement reached with the International Monetary Fund (IMF), the Salvadoran government will terminate or sell the operations of Chivo and revoke Bitcoin's legal tender status to reduce Bitcoin's share in its economy.